NIOS Solved Papers: Economics (318) - April' 2011

APRIL’ 2011
[Time : 3 Hours]
[ Maximum Marks : 100]
Note : (i) This Question Booklet consists of two Sections, viz., ‘A’ and ‘B’.
(ii) All questions from Section ‘A’ are to be attempted.
(iii) Section ‘B’ has got more than one option. Candidates are required to attempt questions from one option only.
1. Give the meaning of fixed investment.            2
Ans.:- Fixed investment in economics is the purchasing of newly produced fixed capital. It is measured as a flow variable – that is as an amount per unit of time.
Thus, fixed investment is the accumulation of physical assets such as machinery, land, buildings, installations, vehicles, or technology.
2. Distinguish between primary data and secondary data.            2
Ans.:- The following are the differences between primary data and secondary data:-
Primary data
Secondary data
Primary data are those data which are collected originally.
Secondary data refer to those data which are collected through other sources.
Nature of data
Primary data are in the form of raw-material to which statistical methods are applied.
Secondary data are in the form of finished product as they have already been statistically applied.

3. National income is Rs 5,000 crores and domestic income is Rs 4,800 crores. Calculate net factor income from abroad. 2
Ans.:- Net factor income from abroad = Net income – domestic income
                                                                           = 5000 – 4800
                                                                           = 200 crores
4. What are real flows?                 2
Ans.:- Real flows refer to the flow of the actual goods or services, while money flows refer to the payments for the services or consumption payments.

5. What is meant by land in economics?               2
Ans.:- Land, in economics, the resource that encompasses the natural resources used in production. In classical economics, the three factors of production are land, labour, and capital. Land was considered to be the “original and inexhaustible gift of nature.”

6. A firm’s value of output is Rs 20,000. Its opening stock and closing stock are Rs 3,000 and Rs 1,000 respectively. Calculate its sale.                                2
Ans.:- Sale = opening stock + output – closing stock
                Sale = 3000 + 20000 – 1000
                Sale = 22000

7. State the law of demand.                                        2
Ans.:- In microeconomics, the law of demand states that, ”conditional on all else being equal, as the price of a good increases, quantity demanded decreases; quantity demanded”. In other words, the law of demand describes an inverse relationship between price and quantity demanded of a good.

8. Is Indian economy a developing economy? Give two reasons in support of your answer.        2
Ans.:- Yes Indian economy is a developing economy
The following are the reasons
a)      Low Per Capita Income (PCI):- According to the World Bank’s Report, n 2017, India’s PCI was $ 1940 and was ranked 138 out of 184 countries. Therefore, we can conclude that the per capita income of an Indian resident is lower than most countries in the world.
b)      Occupational Pattern- Primary Producing:- a majority of the population is engaged in agriculture (around 52 percent). However, in 2011-12, the contribution of agriculture to the national income was only 13.9 percent. This disparity is slowing India’s progress.

9. From the following data, calculate closing stock:         2
1)            Stock investment) (–) 7,000
2)            Opening stock  8,000
Ans.:- Closing stock = opening stock + invested – sales
                            Closing stock = 8000+ (-7000)
                            Closing stock = 1000
10. What does an outward shift of production possibility curve show?                  2
Ans.:- The other meaning of economic growth is an increase in what an economy can produce if it is using all its scarce resources. An increase in an economy’s productive potential can be shown by an outward shift in the economy’s production possibility frontier (PPF) OR Curve.

11. Describe any two main features of Indian economic policy before 1991.        5
Ans.:- Two main features of Indian economic policy before 1991 are:-
1. Agriculture Based Economy:- Agriculture and allied sectors provide around 14.2% of Indian GDP while 53% of total Indian population is based on the agriculture sector.
2. Over population:- in every decade Indian population get increased by about 20% During the 2001-11 population increased by 17.6%. Currently India is adding the total population of Australia every year. India is the possessor of around 17.5% population of the whole world.

12. From the following frequency distribution, prepare a ‘more than’ cumulative frequency distribution:           5
More than Cumulative frequency
More than 10 = 12+15+14+13+11=65
More than 20 = 15+14+13+11 = 53
More than 30 = 14+13+11 = 38
More than 40 = 13+11 = 24
More than 50 = 11
More than 60 = 0

13. Explain the meaning and four strategies of sustainable development.           5
Ans.:- Sustainable development can be defined as development that meets the needs of the present without compromising the ability of future generations.
Four strategies of sustainable development in our locality are:-
(i)      Use of Eco-Friendly Fuel the fuels such as petrol and diesel emit huge amount of carbon dioxide that add to the Green House impact. In order to control pollution, the use of CNG and LPG should be promoted.
(ii)    Use of Renewable Resources, India being a tropical country is well endowed with sunlight, water and wind energy. These natural resources are renewable and pollution free. Thus, attempts should be made to harness solar and wind energy by employing different technologies it would help in sustainable economic development.
(iii)   Recyclable Products The household waste materials like newspapers, old bottles, used batteries etc should be accumulated and should be distinguished as bio-degradable and non-biodegradable wastes.

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